PetroleumGas University of Ploiesti BULLETIN Vol. LXIII No. 3/2011 1  13 Economic Sciences Series         Olalekan Asikhia * , Daniel Orugboh ** * College of Business and Social Sciences, Covenant University, Ota, Canaan land, Idiroko, P.M.B.1023, Ota, Ogun state, Nigeria email: olalekanasikhia@yahoo.com ** Department of Business Administration, Faculty of Business and Social Sciences, Olabisi Onabanjo University, AgoIwoye, Ogun state, Nigeria  The research investigated the marketing costefficiency of natural gas over other alternative fuels in Nigeria. To establish this, an ipso facto research design was explored using a number of data collected for five years from the Nigerian Gas Company limited (NGC) and some selected gas consuming companies namely PHCN Egbin, P.Z Industries – Ikorodu and WAPCO – Shagamu were analyzed. The findings showed that natural gas is more cost efficient than other competing fuels, with various attendant implications for the economy.   marketing cost efficiency, natural gas, Nigeria   M31  Energy is a very important input in the process of economic development of all nations. In Nigeria, energy resources have been playing a dual role of being a fuel for economic growth and also as revenue. The revenue from crude oil alone has been the single most important component of funds derivable during the past three decades for economic development of Nigeria (Kupolukun, 2002). Other revenue earning sources like gas was not accorded the deserved attention. However, due to the dwindling fortunes and uncertainties of the crude oil market, Nigerian government has made deliberate efforts to deemphasize the role of crude oil in the economy while making serious efforts at developing other energy sources which equally have the potentialities of improving the revenue generation base. In this wise, the Obasanjo administration mandated the Nigerian National Petroleum Corporation (NNPC) to create as much revenue from gas as of oil within the decade, end gas flaring, address environmental issues and develop the domestic natural gas market. Also the expected growth rate of natural gas in the energy mix of industrialized countries which in itself guarantees a demand for gas from developing economies with abundant reserves, further emphasizes the need to pay more attention to the establishment of the necessary infrastructure for gas development especially in Nigeria.